Trystan Casey
PG&E, or Pacific Gas and Electric Company, is a utility company that provides natural gas and electricity to customers throughout Northern and Central California. PG&E offers various services, including energy delivery and generation, and works with third-party energy providers to offer alternative energy options to its customers. Third-party electricity in a PG&E bill refers to purchasing electricity directly from another company, separate from PG&E's generation services. This allows customers to choose their power source, which may be cheaper and/or greener.
| Characteristics | Values |
|---|---|
| What is 3rd Party Electric? | The actual electric power used, generated by another company. |
| PG&E Charge | For distribution only. |
| Cheaper Option | 3rd Party costs are often cheaper than PG&E. |
| Example of 3rd Party Company | East Bay Community Energy. |
| Bill Credit | Customers on a Community Choice Energy Aggregator (CCA) service will receive a monthly bill credit from PG&E (called the Generation Credit) that offsets the CCA charges. |
| PG&E Extra Fee | PG&E tacks on an extra fee for using 3rd Party power. |
| Solar Panels | If you have solar panels, you may be charged a small amount each month and then billed a true-up cost after a year. |
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What You'll Learn
PG&E's Self-Generation Program for businesses
PG&E's Self-Generation Incentive Program (SGIP) is a California financial rebate program that helps residential and non-residential customers access power during planned and unplanned power outages. The program offers rebates for installing battery storage systems or solar and battery storage systems. Funding for eligible customers can range from 15% to 100% of installation costs, combined with federal tax credits.
All non-residential PG&E customers are eligible for a general market rebate, which may cover up to 25% of the cost of installing a battery storage system. To qualify for this rebate, businesses must meet specific criteria, such as being located in high fire-threat districts or serving customers who experienced multiple public safety power shutoffs.
For residential customers, PG&E offers rebates to those living in Tier 2 or Tier 3 High Fire-Threat Districts (HFTD) or who have experienced multiple power shutoffs or outages. Eligible customers may receive up to 100% funding for installation costs, including battery storage or solar and battery storage systems.
In addition to the SGIP, PG&E offers larger self-generation programs where customers can apply for, install, and operate an Electric Generation Interconnection (EGI) project of any size. This includes resources for generating and selling unused power, as well as guidance for the standard Net Energy Metering (NEM) interconnection process. PG&E also provides support for renewable energy projects, such as solar and wind interconnection, and offers credits to offset energy costs.
Businesses interested in PG&E's self-generation programs can explore tools and resources on the PG&E website to learn more about their options and eligibility.
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PG&E's third-party billing
PG&E (Pacific Gas and Electric) is a utility company that provides natural gas and electricity to homes and businesses in California. While PG&E is the default electricity provider in California, consumers have the option to choose their own electricity provider from a variety of third-party retailers. This is known as community choice aggregation (CCA).
Third-party electricity providers in the CCA program include companies like East Bay Community Energy (EBCE), CleanPower SF, and San Jose Clean Energy (solar). These companies generate electricity which is then distributed by PG&E. Customers who choose to purchase electricity from a CCA will see a charge from the third-party company and will also receive a monthly bill credit from PG&E (called the Generation Credit) that offsets the CCA charges.
PG&E also offers a Core Gas Aggregation Service (CGAS) program that allows consumers to purchase natural gas from third-party suppliers. Additionally, consumers can choose to purchase their own electricity generation equipment, such as solar panels, and pay PG&E for delivery charges only.
It is important to note that third-party providers may offer lower rates or more competitive plans than PG&E. However, consumers should carefully compare the rates and terms of service offered by different providers before making a decision, as opting out of a third-party billing plan will likely increase the overall PG&E bill.
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San Jose Clean Energy (SJCE)
As a not-for-profit organization, SJCE reinvests revenues back into the community through competitive rates and local programs. For example, they offer up to $14,900 in rebates for adding battery storage to new or existing solar installations. They also provide incentives for electric vehicle charging infrastructure and energy efficiency.
SJCE offers residents a choice between paying less for a cleaner energy mix, paying more for 100% renewable energy through their TotalGreen service, or paying the same price for the same mix as PG&E. This allows customers to choose the energy plan that best suits their needs and preferences.
By choosing SJCE, residents can support the transition to clean energy and help reduce greenhouse gas emissions, which is a major goal for the state of California. Additionally, SJCE stimulates renewable energy development projects, creates local jobs, attracts businesses, and introduces competition into the energy utility market.
SJCE is similar to other Community Choice Energy (CCE) or Community Choice Aggregation (CCA) programs in California, such as CleanPowerSF in San Francisco, Peninsula Clean Energy in San Mateo County, and Marin Clean Energy in Marin County. These programs allow cities and counties to provide alternative energy options to their residents and capture some of the energy generation revenues to reinvest locally.
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PG&E's generation charges
In some cases, cities and counties have Community Choice Aggregators (CCAs) that allow them to provide alternative energy options to their residents and businesses, independent of PG&E. For customers who purchase electricity from third-party providers, PG&E includes a Power Charge Indifference Adjustment (PCIA) in their bills. The PCIA ensures that customers who have left PG&E service still contribute to the above-market costs for electric generation resources procured by PG&E on their behalf. "Above market" refers to the difference between the utility's payment for electric generation and the current market prices for those resources.
For customers of third-party providers, PG&E tacks on an extra fee for using the third-party power. Some cities with alternative energy providers, such as San Jose Clean Energy (SJCE), include this fee in their rate setting to maintain competitive rates with PG&E. Additionally, certain cities and counties have a Utility Users Tax (UUT) that is applied to both PG&E delivery and generation charges.
It is important to note that PG&E no longer charges customers for electricity generation if they are provided this service by an alternative energy provider, such as MCE Clean Energy (MCE). In such cases, the MCE charge replaces the PG&E generation fee and covers the cost of sourcing electricity for the customer's needs.
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PG&E's Power Charge Indifference Adjustment (PCIA)
The Power Charge Indifference Adjustment (PCIA) is a fee charged by investor-owned utilities (IOUs) in California to all customers, including those who receive generation services from a Community Choice Aggregator (CCA) or Electric Service Provider (ESP). The PCIA is intended to leave all customers indifferent to taking up service with a CCA or another alternative. It includes above-market costs related to power supply commitments that the IOUs made many years ago. Above-market means the cost of the resource is higher than the revenue the resource generates. These include Utility-Owned Generation (UOG), such as nuclear, natural gas, and hydroelectric plants, as well as long-term renewable energy contracts with third parties.
In the past, the PCIA has been known as an "exit fee," but this is a misnomer. The PCIA is calculated using Market Price Benchmarks (MPBs), which have experienced extreme variability in recent years. When the current market value of IOU power portfolios is lower than what the utility originally paid, the PCIA goes positive, and departed customers pay the difference. Conversely, a low indifference amount and subsequent PCIA savings can result from either the cost of the portfolio going down or the value going up.
The PCIA is used for the PCIA Forecast and True Up for the Energy Resource Recovery Account (ERRA) of IOUs. For example, in October 2024, the Energy Division issued the values for the PCIA Forecast and True Up that investor-owned utilities would use for their 2025 ERRA. The PCIA ensures that the remaining utility customers do not have to assume the costs that the IOUs incurred while anticipating serving customers who now receive electric service from a CCA or Direct Access.
In the context of PG&E, customers who opt for third-party electric providers may still receive bills from PG&E with additional charges. This is because PG&E tacks on an extra fee for using third-party power. In some cases, customers with solar panels may be charged a minimal amount each month and then billed a true-up cost after a year. True-up dates are when net charges and credits for electric generation are settled.
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Frequently asked questions
The 3rd Party electric in your PG&E bill refers to the actual electric power used, generated by another company. PG&E charges you for the distribution of this electricity.
You can opt to have your power generated by PG&E, but it may not be cheaper. You can also contact your 3rd party provider and ask for a comparison with PG&E.
3rd party electric is often cheaper than PG&E and may offer renewable energy options. PG&E charges for the distribution of electricity and the maintenance of power lines.
